Credit Policy for businesses and how to extend credit and manage credit risk

You can immediately improve your collections if you follow these 4 steps right away with the accounts that have the largest past due balances.

You called John Smith this morning for the 18th time and left another message.  You found out that John recently bought a new truck and is renovating his home.  When you left another message this morning, you were told John is away on vacation.  You haven't collected any money from John in months and your boss is chewing you out.

Since your phone calls are obviously not working, you decide to write John a letter.

Take these 4 steps:

1.  Make your letter brief and to the point, being blunt is best.

2.  Use a larger font in the important parts of your letter.

3.  Give them a payment deadline day, date and time, tell them what will happen on that date if no payment is received.

4.  Send this letter in a flat rate priority mail invelope with delivery confirmation.

I know what your thinking, priority mail envelope? How much is that going to cost?! You pick up the envelope for free at the post office or order them at their website, the postage is less than a gallon of gas, and isn't that worth receiving much more in return?

5.  Bonus item! Email me if you do not get paid.  I mean it.

I have been consulting with companies for years advising them to do this and they all have had FANTASTIC results. So if you do not have great results please email me because so far this always works like a charm.